A TJ Maxx store in North Miami, Fla., on March 19, 2016.Carlo Allegri/Reuters
TJX Cos TJX-N raised its annual profit forecast on Wednesday, benefiting from lower costs and strong demand from cash-strapped customers flocking to its off-price stores for products such as apparel and footwear.
The TJ Maxx parent has hit the right spot as customers continue to hunt for value and better deals even as inflationary pressures ease, driving steady traffic and sales at its outlets.
Retailers including TJX, Walmart WMT-N, and Amazon AMZN-Q have rolled out holiday deals on everything from toys to household items earlier than usual as they woo penny-pinching shoppers.
The Marshalls chain parent expects annual earnings per share of $4.15 to $4.17, up from its prior forecast of $4.09 to $4.13.
It, however, maintained its target of 3 per cent annual comparable store sales growth. TJX’s shares, which are up 28 per cent this year, were down 1.3 per cent at the open on Wednesday.
“TJX is historically conservative in their guidance while consistent in their results,” said BMO Capital Markets analyst Simeon Siegel, adding, “the company continues to take share from brands as they have been pivoting away from traditional wholesale partners.”
The retailer’s raised profit expectation comes as mixed forecasts from Walmart and Target TGT-N have fuelled uncertainty around the holiday shopping season.
Walmart, which offers products at the lowest price possible, again raised its annual forecasts. But smaller rival Target, where non-essentials constitute a bigger share of revenue, signalled muted holiday sales.
TJX’s third-quarter net sales rose 6 per cent to $14.1-billion, beating analysts’ estimates of $13.95-billion, according to data compiled by LSEG.
The company reported a profit of $1.14 per share, compared with the average estimate of $1.09.
TJX also said it planned to enter Spain through its TK Maxx banner in early 2026.